Martin Lewis has broken his social media silence on the latest prediction from Cornwall Insight. He spoke out about the 'tragic' prediction, which will see the average household energy bills hitting £355 a month this winter.
New dramatic forecasts from Cornwall Insights, published on Tuesday, August 9, predict bills will rise to £4,266 in January, before rising again in April to £4,427 - the previous forecast was for £3,729 in April. The company said these revised numbers were due to energy regulator Ofgem's "change in calculation methodology."
This change in methodology refers to Ofgem's decision to change the price cap every three months, instead of six, and increased wholesale prices for its high forecast. Ofgem said the more frequent reviews allow energy companies to provide more accurate pricing for customers - you can reach more on that here.
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Money Saving Expert Martin Lewis has spoken out on the issue, calling the "zombie" government to wake up and take action on the predictions, which he says "lives depend on."
Tweeting about the announcement, Martin Lewis said: "Tragic news. The latest Cornwall Insight prediction, based on Ofgem's new methodology, is an 81% price cap rise in Oct (taking typical bill to £3,582/yr) and a further 19% in Jan (so £4,266/yr) Action & planning is needed now. The zombie govt needs [to] wake up sooner than 5 Sept.
"These amounts are unaffordable for millions. The Jan figure equates to 45% of the full new state pension, and a higher proportion of the old one. The rise alone on the Jan prediction, from when the help was first announced in May, is roughly £1,400/yr..
"That rise alone swallows up not just £400 help for all homes, but even the £1,200 for the poorest This will leave many destitute. Tax cuts won't help poorest incl many elderly & disabled who've higher usage Cutting green levy'd be just tiny sticking plaster on a gaping wound...
"The leadership debate must not ignore this portentous national cataclysm any more. -They can't say they weren't warned -The excuse "we need to wait for Ofgem figure" doesn't wash. In May govt asked Ofgem for forward guidance & made plans based on that. It can do the same now.
"An action plan is needed TODAY They are all in the same party, let's call on them to come together for the good of the nation rather than personal point scoring People's livelihoods, mental wellbeing & in some cases very lives depend on this. This is a desperate Pls share."
Shadow work and pensions secretary Jonathan Ashworth has also reacted to these figures. He said: "Utterly devastating. Families and pensioners will be pushed into destitution. Instead of fantasy island Tory leadership unfunded promises we need action. Yet the zombie government has gone awol."
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